Lower VAT collections, decline in construction activity and job advertisments in 2019 - RBF

The latest Reserve Bank of Fiji Economic Review states that the growth in net Value Added Tax collections remained relatively lower in 2019 compared to 2018, there is stalling of large construction projects and a decline in job advertisements in the country.

The RBF says new and second-hand vehicle registrations also fell in Fiji while commercial banks’ new lending for investment purposes declined by 16.7 percent last year, driven by the contraction in lending to the real estate and the building and construction sectors.

The Reserve Bank also states that construction activity remained weak as domestic cement sales fell by 6.2 percent due to the stalling of large construction projects and on-going transportation setbacks.

The RBF says labour market conditions softened in 2019 as indicated by the RBF’s Job Advertisements Survey. Vacant jobs advertised in both newspapers declined by 2.3 percent last year compared to the 4.4 percent growth noted in 2018.